Kenyan startup BuuPass, which specializes in digitizing intercity bus and transportation operations in Africa, has set ambitious expansion goals to establish a presence in eight additional markets by 2025. This expansion would bring its total market presence to 12, following its recent acquisition of its Kenyan counterpart, QuickBus.
Co-founded by Sonia Kabra and Wyclife Omondi in 2016, BuuPass operates as a B2B2C mobility marketplace that facilitates the booking of travel tickets for consumers through its web, app, or USSD platforms. Additionally, it offers a SaaS solution that assists bus operators in managing their operations, inventory, and sales more efficiently.
To date, BuuPass has successfully sold over 16 million travel tickets and achieved a total value of goods sold exceeding US$100 million. The startup has also participated in the Google for Startups Accelerator Africa and received support from the Google for Startups Black Founders Fund.
Kabra pointed out that a staggering 95 percent of the African intercity transport market remains undigitized, leading to operational inefficiencies and subpar customer experiences. She noted that the lack of digital tools for bus operators and a centralized platform for consumers to compare and book tickets were significant gaps in the market. BuuPass’s primary competition comes from traditional offline operators and local e-ticketing entities.
In February 2023, BuuPass announced a US$1.3 million pre-seed funding round and subsequently acquired QuickBus, a Kenyan bus ticketing startup launched in 2019. QuickBus operates a marketplace that simplifies the process for users to compare prices and book bus tickets, while also aiding bus companies in streamlining their operations.
With the acquisition of QuickBus, BuuPass has expanded its operations to South Africa and Nigeria, adding to its existing presence in Kenya and Uganda. The company is eyeing Tanzania as its next market entry point as part of its aggressive expansion strategy.
BuuPass boasts a significant footprint in the regions it serves, with operations spanning over 650 localities in Kenya and more than 80 in Uganda. The company’s growth strategy includes B2B sales for bus digitization, B2C marketing, and forming partnerships with telecommunications companies and banks. It generates revenue by earning commissions on bus, train, and flight ticket sales.
Despite facing challenges such as slow digitization among bus operators, building a two-sided marketplace, the impact of COVID-19 on travel, and navigating new market entries, BuuPass is tackling these obstacles by refining its expansion strategy, strengthening its team, and perfecting its go-to-market models, according to Kabra.
